Look at the formula. Then answer the questions that follow.

Question

Two-Part Question
Multiple Choice Question
Part A:

Based on your knowledge of economics, which term correctly replaces V in the formula?
A.
tax revenue

B.
government loans

C.
consumer spending

D.
currency appreciation

Answer 1

C. consumer spending

Part B:

What does the formula represent in economic terms?
A.
trade balance

B.
gross domestic product (GDP)

C.
inflation rate

D.
economic growth